We give owners a transcript of all phone orders almost instantaneously, and then we give them four months to review the orders and raise questions.” It also capped fees that platforms may charge restaurants for orders and deliveries during an emergency.Ī Grubhub spokesperson told BuzzFeed News: “We explain exactly how the process works to restaurant owners when they sign the contract. On Wednesday, the New York City Council passed a bill prohibiting platforms from charging for telephone calls in which a transaction did not take place during the state of emergency. “Most people don’t even realize when they google the phone number for a restaurant, 9 times out of 10, they’re pulling up Grubhub’s forwarding number for that restaurant,” New York City Council Member Justin Brannan told BuzzFeed News. Some restaurant owners have also raised this concern about Yelp, which lists Grubhub numbers, according to Vice. This leads some customers to call it even if they don’t intend to use Grubhub. The redirect number can also appear higher in Google search results (including the Google panel for that business) than the restaurant’s own line. Here’s how phone fees work: Grubhub (which also owns Seamless, MenuPages, Tapingo, and LevelUp) generates a unique phone number for each restaurant on its platform it appears on the restaurant’s Grubhub or Seamless page and redirects to the restaurant's own phone line (a restaurant cannot list its own phone number on its Grubhub or Seamless page). If you look at it that way, you see how much it hurts.” “You are paying for someone to drink your coffee. “If a customer calls to place a coffee order, we’re paying a $6.42 fee - for a coffee,” Rafaela Negrao, co-owner of Gourmet Kitchen in Brooklyn and the “ ghost kitchen” Palmito, told BuzzFeed News, explaining that she pays a flat fee per phone order. Restaurant owners and the New York City Council say the practice is further squeezing businesses already stretched thin by the coronavirus pandemic and the lockdowns. Customers trying to avoid online delivery platforms like Grubhub by calling restaurants directly might be dialing phone numbers generated and advertised by those very platforms - for which restaurants are charged fees that can sometimes exceed the income the order generates.
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